Cancellation

The end of an insurance policy. Usually applied to the premature ending of the policy for nonpayment but may be used to describe the ending of any insurance policy.

Captive Insurance Company

A captive insurance company is an insurance company that has been set up to provide coverage at a lower cost than available by going through the general insurance market. The company's stock is controlled by one interest or a group of related interests so as to provide coverage for their business operations. A captive insurance company may be a nonadmitted, nonresident, or foreign insurer. Sometimes it may provide reinsurance to a self-insure or a domestic company.

Cargo Insurance

Cargo insurance is another name for inland marine insurance which covers loss to moving or moveable property and is an outgrowth of ocean marine insurance. Historically, ocean marine insurance held the transporter responsible for property loss before, during, and after the completion of the voyage. In the 1800's, the non-ocean portion of the journey grew as cargoes were transferred to barge, etc., and the term "inland marine" was coined. Inland marine policies became known as "floaters" since the property to which coverage was originally extended was essentially "floating."

Certificate of Insurance

An official document created by an insurance carrier or agent to prove insurance coverage to a third party.

Claim

The formal request by a policy holder or claimant to be paid under the terms of the insurance policy.

Claims Made

A method of providing liability insurance in which the insurer agrees to cover all claims asserted against the insured during a specified date period regardless of when the claim occurred. All claims-made policies have a "retro" date which specifies the beginning date for claims to be considered.

Coinsurance

Coinsurance is an arrangement by which the insured, in consideration of a reduced rate, agrees to carry an amount of insurance equal to a percentage of the total value of the property insured.

An example is if you have guaranteed to carry insurance up to 80% or 90% of the value of your building and/or contents, whatever the case may be. If you don't, the company pays claims only in proportion to the amount of coverage you do carry.

Collision Coverage

This covers loss to the insured person's own vehicle caused by its collision with another vehicle or object.

Commercial General Liability Coverage (CGL)

An all encompassing type of insurance policy which covers all liability exposures for all locations and causes of loss except those specifically excluded in the policy.

Commercial Multiperil

Describes a type of package policy which covers more than one peril or cause of loss in a single policy. Should not be confused with a commercial package which provides several types coverages in a single policy.

Commercial Package Policy (CPP)

A single insurance policy which combines several types of insurance coverages. A typical CPP might contain coverage for property, liability, crime, auto, inland marine and boiler and machinery.

Commercial Property Coverage

Protects against physical damage to buildings, contents, stock, and equipment. The terms and conditions of coverage are determined by the limit of insurance chosen by the policyholder. The limit is based on the items that the policyholder wishes to insure; i.e., buildings, stock, machinery, valuable papers, etc. Business Interruption and Extra Expense Coverage can also be provided under a Commercial Property policy. Business Interruption protects the policyholder against lost profits as a result of direct damage to the facility. Extra Expense provides payments for those extraordinary expenses necessary to continue operations after physical damage to the policyholder's facility.

Completed Operations Liability Coverage

This form of liability insurance provides coverage for bodily injury and property damage rising from completed or abandoned operations, provided the incident occurs away from premises owned or rented by the insured.

Operations are deemed completed at the earliest of the following items:

When all operations to be performed by or on behalf of the insured under contract have been completed. When all operations to be performed by or on behalf of the insured at the site of the operations have been completed. When the portion of work out of which injury or damage rises has been put to its intended use by a party other than the contractor or subcontractor.

Comprehensive Automobile Coverage

Owned Automobiles - Covers liability rising out of the ownership, maintenance or use of automobiles. Hired Automobiles - Covers liability for the use of hired automobiles in your business. Non-Owned Automobiles - Covers liability for the use of non-owned automobiles in your business. An example would be an employee using his/her own car on an errand for you. Uninsured Motorists - Protects insureds who are not contributorily negligent against bodily injury caused by negligent uninsured motorists. Comprehensive - Pays for damage to or the loss of automobiles from perils other than collision. A deductible applies. Collision - Pays for damage to or the loss of automobiles from upset or collision with another object. A deductible applies.

Comprehensive General Liability Coverage

Under this form of insurance and regarding a covered occurrence, the company will pay all sums the insured becomes legally obligated to pay as damages due to:

1. Bodily injury (Coverage A) 2. Property damage (Coverage B) The insurance company has the right to defend any suit against the insured seeking damages for bodily injury or property damage, even if any of the allegations of suit are groundless, false, or fraudulent, and to make such investigation and settlement of any claim or suit as it deems expedient. However, the company is not obligated to pay any claim or judgment or to defend any suit after the applicable limit of the company's liability has been exhausted by payments of judgments or settlements.

Consequential Loss or Damage

Consequential loss or damage -- as opposed to direct loss or damage -- is indirect loss or damage resulting from loss or damage caused by a covered peril, such as fire or windstorm. In the case of loss caused where windstorm is a covered peril, if a tree is blown down and cuts electricity used to power a freezer and the food in the freezer spoils, iIf the insurance policy extends coverage for consequential loss or damage then the food spoilage would be a covered loss. Business Interruption insurance, extends consequential loss or damage coverage for such items as extra expenses, rental value, profits and commissions, etc.

Contents

Contents includes just about anything in the home (including garage and outbuildings) belonging to the policyholder or a member of his family living in the same house, or to resident domestic servants. It also includes property, which is not owned by the policyholder but for which he is responsible, such as rented property. Furniture, furnishings, household goods, electrical appliances, food and drink, clothes, and money up to a specified limit all count as 'contents'. Also included are movable fixtures and fittings, for example, special lighting fittings which would be taken away on removal. Fittings, which would be left in the house, such as built-in furniture, count as part of the 'buildings', although fitted carpets are classed as 'contents'. Certain types of property are excluded. The cover applies principally to contents actually inside the home, although there is some cover under a 'standard' policy for contents temporarily away from the home. Some policies also include theft of household contents from the garden or immediate vicinity of the home.

Contractors' Liability Coverage

(1)Premises/Operations

The "premises" portion of your liability insurance provides for payment on your behalf of all sums you become legally obligated to pay as damages resulting from bodily injury and/or property damage caused by an insured peril and rising out of the ownership, maintenance, or use of premises and your operations in progress. The "operations" portion of your liability insurance covers operations in progress and is intended for situations where your principal business operations are performed away from your premises. (2)Completed Operations

This portion of your liability insurance covers you for possible liability for bodily injury and/or property damage after your work is complete and you have left the job site.

Contractors' Protective Liability Coverage

This insurance coverage provides for payment on behalf of the insured of all damages the insured becomes legally obligated to pay due to bodily injury or property damage caused by an occurrence rising from the following:

Operations performed for the named insured by independent contractors. Acts or omissions of the named insured in connection with his/her general supervision of such operations. This does not include maintenance and repair at premises owned by or rented to the named insured, or structural alterations at such premises that do not involve changing the size of or moving buildings or other structures.

Contractual Liability Coverage

It is common in construction and other agreements (written or oral) for one party to "assume" the liability of another. This is sometimes referred to as a "hold harmless" agreement. The extent to which one holds another harmless varies from contract to contract, job to job, etc.

To assume the liability of another, regardless of extent, is a voluntary undertaking which increases your exposure to loss. A standard Commercial General Liability policy does cover this additional exposure subject to certain exclusions.

Credit Life Coverage

Similar to a life insurance policy for the amount of a loan. Pays off the loan if the debtor dies. Normal term life insurance is usually a better deal.

Crime Insurance

Crime Insurance pays an owner for the loss of property due to its wrongful taking by someone else through employee dishonesty, burglary, robbery, or theft. There are many different types of crime coverage available, including coverage for computer theft and fraud.

Crop Coverage

Cross Liability Coverage

In the event of claim by one insured for which another insured covered by the same policy may be held liable, this endorsement covers the insured against whom the claim is made in the same manner as if separate policies had been issued. However, it does not operate to increase the insurance company's overall limit of liability.